How Technology Is Impacting the Banking Industry

Financial institutions looking for an edge are turning to “intelligent banking.” Technology is impacting the banking industry more and more. Deeper customer insights help banks deliver better customer experiences that lead to more growth and customer loyalty. 

Microsoft and its partners help banks get these insights so they can capture a 360-degree view of their customers. This heightened visualization enables them to deliver products customers want and utilize bot services to improve customer service. Consumers today have greater choices in banking than ever: These intelligent banking features can help banks stand out from their competition.  

These statistics show how technology is impacting the banking industry:

• 54 percent of banks feel simplifying the customer journey is the most important trend in retail banking.” 2017 Retail Banking Trends and Predictions,” Digital Banking Report, December 2016.
• Only 8 percent of millennials feel comfortable trusting financial institutions to be a partner in their financial goals. “Millennials + Money: The Unfiltered Journey,” Facebook for Business, 2016.
• 40 percent of consumers say they would remain loyal to their bank if they offered more personalized services. “Banking on Value: Rewards, Robo-advice and Relevance,” 2016 North America Consumer Digital Banking Survey, Accenture Consulting, 2016.

Microsoft helps banks modernize their core systems and processes and reduce cost and risks while satisfying customers and encouraging employees to stand out and foster sustainable growth. Microsoft’s collaboration platforms enable employees to increase productivity and empower them to deliver the best customer experiences. 

FDIC Requirement for Banking

The Federal Deposit Insurance Corporation (FDIC) is meant to encourage financial stability in the U.S.  by promoting sound banking practices and protocols. Because of this, banks are challenged by being required by the FDIC to manage antiquated technologies in some of the more critical areas of their digital environment. Being that these requirements are mandated and somewhat outdated, the challenge isn’t to change those systems, but to integrate more modern technologies with them. The ideal solution is to work in parity, allowing the actions of the employees to work in the most modern and secure environment possible, while integrating what data needs to be input to the older technologies, securely and without data corruption.

Advanced Cybersecurity for Banks

Seeing as 86% of cyber crimes in 2020 were financially motivated, it’s crucial that banks make it a priority to stay protected. Using modern Microsoft systems such as Defender and Advanced Threat Protections, banks can identify malicious efforts rather quickly, and mitigate the risk to customer information.

Trust in Banking

Trusting in a financial institution is critical.  With the competition gaining ground on the traditional brick and mortar model, it is urgent that institutions invest in making the client’s experience safe, secure, and convenient.  More and more banks are coming out of the brick and mortar world and engaging millennials where they prefer to be met – digitally.  Companies like New Egg, Chime, SoFi and many others, don’t have the overhead of physical buildings and allow consumers instant access to their money, loans, finance options.  Quick and convenient is the way consumers prefer to be met, so being able to match the convenience and the access, and compound that with a face in a traditional bank is actually a benefit.  

Banking is a service industry that is losing its person-to-person comfort.  You used to go to your favorite teller, or branch.  Now you go to your favorite site.  How a traditional bank competes with that requires a different way of thinking.  SkyTerra can build on that person-to-person advantage by modernizing the digital ranks and integrating die hard systems into an experience that both traditional and modern customers can find engaging.  It’s done the customer wants it done, without losing the charm and convenience of a local bank.

Intelligent Banking: How Technology Is Impacting the Banking Industry

Clearly, modernization is one of the most prominent ways Microsoft helps banks foster growth. By enabling  payment methods to make real-time transactions and updating core systems, the customer experience is simplified. Microsoft also uses state-of-the-art security to protect against cyber crime. Are you a financial institution looking for a way to stand out from your competition? SkyTerra Technologies can help you implement Microsoft’s intelligent banking solutions into your organization. Together, we can create a personalized experience for your customers and turn them into raving fans. Book a meeting with us to learn more about how intelligent banking can help your business.